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Published
Apr 26, 2010
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Hong Kong cargo carriers charge premium to clear backlog

By
AFP
Published
Apr 26, 2010

HONG KONG — Air cargo carriers are charging Hong Kong exporters a premium to clear their backlog as thousands of tonnes of goods are estimated stuck at warehouses after volcanic ash closed European skies.


Photo: AFP

In some cases, freight rates to Europe have jumped to about 100 Hong Kong dollars (13.30 US) per kilogramme, from less than 30 dollars before the closure of airports in Europe, according to the Hong Kong Shippers' Council.

Sunny Ho, council executive director, said many Hong Kong exporters "would be in trouble" for failing to deliver goods ranging from high-end fashion to automobile parts on dates specified in contracts with buyers.

"It is difficult for airlines to clear all the backlog they have accumulated in a short time," Ho told AFP Friday 23 April.

"No one expected that airports would be forced to close because of volcanic ash.

"Exporters may have to pay compensation or charge less for their goods if they don't have a clause in the contract to exclude their liability under such condition."

Ho said some exporters had chosen to ship goods by sea instead.

"But you can't do it with perishable goods -- it takes more than 20 days to send them by sea, compared to only one day by plane."

Cathay Pacific, the city's largest air freight operator, had suspended new bookings for European shipments until Monday 26 April, the South China Morning Post reported Friday 23 April.

"We hope that we can clear the backlog by Monday 26 April before receiving new orders," an executive from Cathay's cargo division told the Post.

The week-long shutdown of European airports was estimated to have created a backlog of 8,000 tonnes of European-bound cargo in Hong Kong, the Post said.

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